How Do Analysts See J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) Performing In The Years Ahead?

Simply Wall St
January 24, 2019

The most recent earnings update J.B. Hunt Transport Services, Inc.’s (NASDAQ:JBHT) released in December 2018
suggested
that the
company
experienced
a
substantial
headwind with earnings
declining
by
-29%.
Below, I’ve laid out key growth figures on
how market analysts
predict
J.B. Hunt Transport Services’s
earnings growth
trajectory
over the next
few
years and
whether the future looks brighter.
I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

Market analysts’ consensus outlook
for
the upcoming
year seems
optimistic,
with earnings
expanding
by a robust 40%.
This growth seems to continue into the following year with rates
reaching
double digit 51% compared to today’s earnings, and finally hitting US$794m by 2022.

NASDAQGS:JBHT Future Profit January 24th 19

Although
it’s
informative understanding
the growth rate
year by year
relative to today’s
figure,
it may be more
insightful
to estimate
the rate at which the
earnings are
rising or falling
every year, on average.
The advantage
of this
technique
is that
it removes the impact of near term flucuations and accounts for the overarching direction of J.B. Hunt Transport Services’s earnings trajectory over time,
which may be more relevant for long term investors.
To calculate
this rate,
I’ve inserted
a line of best fit through
the forecasted earnings by market analysts.
The slope of this line is the rate of earnings growth, which in this case is 10%.
This means that,
we can
presume
J.B. Hunt Transport Services
will grow its earnings by 10% every year
for the next few years.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.

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